Do The Paycheck Squeeze: Skimp A Little, Save A Lot Broke By Friday? There Are Plenty Of Simple Ways To Alter Your Spending Habits That Allow You To Get From Paycheck To Paycheck Without Feeling Like A Miser -- Or Living Like One.

September 27, 1985|By Barbara Gilder Quint, Special to the Sun-Sentinel

Stop counting the days until payday! These inside moves and ideas will make your salary last longer.

1. Increase your take-home pay. Do you receive an income tax refund each year? You can get more money every payday instead of a once-a-year refund. Here`s how:

Ask your payroll department for a new W-4 form. Like many people, you probably claimed zero or one exemption on this form when you started working. To increase your weekly paycheck, simply increase the number of exemptions you claim and Uncle Sam will deduct less in taxes. There`s no limit to the exemptions you can claim. Just remember you don`t want to end up owing taxes next April 15.

The easy-to-follow instructions on the W-4 form explain how to determine the number of additional exemptions to claim in order to reduce your tax bite by a specific amount. For example, Nancy Grey received a $550 tax refund last year. To ease her end-of-the-week cash crunch, she`d rather get $10 more in her paycheck than a big refund next year. The W-4 instructions tell her to claim an additional two exemptions to receive the extra $10. That reduces her next year`s tax refund to only about $30.

2. Stop unnecessary bank fees. Is your bank charging you $3 to $6 in monthly service fees because your checking account balance isn`t high enough? You may be able to eliminate these extra costs. Some banks will add up the balances in all your accounts (including savings accounts, time deposits and individual retirement accounts) so you can qualify for free checking. If you move all your accounts to one bank rather than spread them around, you may be able to eliminate service fees and pocket the difference. Ask your bank for details.

3. Brown-bag it. Buying lunch every day adds up. A lunch counter sandwich and soft drink can run $3 or more. That`s $15 a week or $680 a year! A sandwich, soda and a handful of potato chips brought from home will cost you less than $1 and leave you with at least $10 more in your pocket at week`s end.

4. Gas up for less. Many gas stations allow you to reduce your fuel costs by 3 to 5 cents (or more) a gallon by pumping your own gas at a self-service island. That can mean an extra dollar in your pocket every time you fill up. If you pay cash instead of using credit, many stations give you another 3 to 5 cents per gallon discount.

5. Scrimp early, spend late. Next payday, spend your money like a miser at the beginning of the week so that you won`t be caught short on Friday. Then, if you have money left over, you can always have a weekend splurge.

6. Cut the coffee cart habit. For most working people, the morning coffee break is a relaxing necessity. Keep the break but do it more cheaply. Buy an electric device (about $5) that boils water in three minutes and keep a jar of instant coffee or tea bags where you work. Add a prewrapped miniature coffee cake that you bring from home, and you have your own coffee break for about 25 cents vs. the 75 cents you would otherwise pay. Savings: $2.50 a week or $125 a year.

7. Collect twice on health care. If you and your spouse both work and have employee family health insurance, you can collect on both policies. Coordination of benefits is perfectly legal as long as you don`t collect more than the actual amount of the bills. Generally, it works like this: Send all medical bills first to the primary insurer. (For you, it`s the insurer at your job; for your spouse, the insurer at his job; for the children, it can be either, depending upon the types of coverage.) Then, after you receive payment from the primary insurer, send copies of all bills and insurance paperwork to your spouse`s insurer. In most cases, this secondary insurer will pay all or part of what the primary insurer did not pay.

8. Put your phone bill on a diet. A letter can be nicer than a phone call and it`s certainly cheaper. Savings are substantial: A five-minute call from Atlanta to New York City during the day costs $2.34 plus tax vs. 22 cents for a letter. If you must call, take advantage of bargain-rate hours. That same $2.34 call costs $1.40 between 5 and 11 p.m., and less than $1 if you call after 11 p.m. on weekdays, or on weekends.

9. Avoid ``guilty conscience`` spending. Are you a working parent who leaves home many mornings feeling guilty? If so, you may be tempted to compensate by picking up a small gift for your child -- a toy, a box of crayons. Don`t. Remember, you work because you want to make life better for your child. If your conscience still bothers you, consider a no-cost treat for your youngster when you get home, such as reading an extra story or playing a game.